SEC prepares its own regulation for the crypto market: the regulator will present an alternative to the CLARITY law
The U.S. Securities and Exchange Commission (SEC) will hold an open meeting on Friday, August 14, at which the first formal draft of cryptocurrency market regulation — the so-called Regulation Crypto — will be presented. This step is a response to the stalled legislative initiative CLARITY (Digital Asset Market Clarity Act) in the Senate, which was not passed before the summer recess.
The essence of the new initiative
According to the regulator's official notices, the meeting will begin at 10:00 a.m. Eastern Time. The key item on the agenda is discussion of a draft of "new rules introducing a special framework for certain investment contracts involving crypto assets." The development is being handled by the Division of Corporation Finance, and SEC Chairman Paul Atkins has made creating transparent conditions for crypto projects a priority under the joint initiative Project Crypto with the U.S. Commodity Futures Trading Commission (CFTC).
The point of the proposal is to give certain digital assets the ability to raise capital under a simplified framework, without the need for full SEC registration. This is a significant shift from the regulator's previous stance, which for decades insisted on strict compliance with all securities law requirements.
Why this matters for the market
The Senate went on recess without holding a vote on the CLARITY Act. Lawmakers filed a motion to consider the matter in mid-September, but unresolved disagreements prevented it from being brought to a vote before the break. Now the SEC is effectively taking the initiative into its own hands, setting the rules of the game for the near term.
The new initiative builds on the joint SEC and CFTC clarification from March 2026, which removed many crypto assets from the status of securities. This created a legal basis for more flexible regulation, and now the regulator is trying to cement this approach at the level of formal rules.
Investors and issuers have long demanded established rules for token issuance and raising investments. The SEC's decision sets temporary guidelines while the bill remains under consideration. If the draft is approved, a public comment period will open, followed by final revisions. Work with the CFTC under Project Crypto will continue, and the September Senate vote on the CLARITY Act could significantly change the balance of power.
My view: This is a landmark step that signals the SEC's transition from a policy of "regulation through enforcement" to creating actual regulatory frameworks. However, don't expect quick results — the process of public comments and final revisions could drag on, and the market will have to adapt to a transitional period of uncertainty. Nevertheless, the very fact of movement toward clarity is a positive signal for long-term investors.